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Costa Rica EOR & PEO

SALARY PAYMENT IN Costa Rican Colón (CRC, ₡)

CONTRACT LANGUAGES Spanish / English

PAYROLL TAX 21.02% – 27.46%

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours

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Hire in Costa Rica

Horizons provides compliance solutions to ensure your business in Costa Rica operates in line with local labor laws and tax regulations. Businesses benefit from hiring in, investing in, or job outsourcing to, Costa Rica in a range of industries, from customer service, to accounting services, to software development.

We also process monthly payroll, and, as a Costa Rica Employer of Record, absorb all local employer liabilities. Partnering with our Costa Rica EOR is the quickest and most cost-effective way to enter the Costa Rican market.

Note, a Costa Rica Employer of Record is also known as a Costa Rica Professional Employer Organization (PEO).

Facts & Stats

EOR Platform

Hire in Costa Rica, and pay employees through our platform or app.

EOR Cost

Our Costa Rica EOR solution is the most affordable on the market.

Time-to-hire

Fast onboarding in Costa Rica, hire in as little as 24 hours.

Contracts

We draft labor contracts compliant with Costa Rican labor law.

Local Benefits

We administer all mandatory benefits and contributions in Costa Rica.

180+ Countries

It doesn’t stop with Costa Rica — we are an international EOR

stay compliant with Costa Rica labor laws

Employment Laws

Employment contracts in Costa Rica

Employers in Costa Rica are legally required to provide written employment contracts to all employees. These contracts should always contain full details of the employment agreement, such as benefits, entitlements, salary/wage, and more. The contracts should also be written in the country’s official language of Spanish, and should reference the local currency of the Costa Rican colon.

Picture of Expert Insights from
Expert Insights from

Jacqueline Pedroza
Regional Manager Americas

The vast majority – 95% – of our clients choose to hire staff in Costa Rica under an open-ended contract with a 3-month probation period. This has become the most common hiring practice in the country.

Indefinite (open-ended)
Probationary period3 months (standard)
Termination notice period

Contract of 3 – 6 months: 1 week

Contract of 6 – 12 months: 2 weeks

Contract of 1+ year: 1 month

Severance7 – 22 days total, depending on years of service

 

Fixed-term
Probationary period3 months (standard)
Termination notice period

Contract of 3 – 6 months: 1 week

Contract of 6 – 12 months: 2 weeks

Contract of 1+ year: 1 month

Severance7 – 22 days total, depending on years of service

 

Working hours in Costa Rica

The standard working week in Costa Rica is a maximum of 48 hours, spread across five or six days. However, there are slightly different rules in place for different types of work.

Overtime must be paid at a rate of 150% of normal pay.

Hire compliantly in Costa Rica without a local entity.

Quick, compliant hiring in 24 hours—no subsidiary required.

Public holidays in Costa Rica

Costa Rica has a range of national public holidays that are celebrated annually. In 2024 these holidays are:

DateHoliday name
1 Jan, 2024New Year’s Day
28 Mar, 2024Maundy Thursday
29 Mar, 2024Good Friday
15 Apr, 2024Battle of Rivas
1 May, 2024Labor Day / May Day
25 Jul, 2024Annexation of Guanacaste
2 Aug, 2024Our Lady of Los Ángeles
15 Aug, 2024Mother’s Day
3 Sep, 2024Day of the Black Person and Afro-Costa Rican Culture
15 Sep, 2024Independence Day
1 Dec, 2024Day of Abolition of the Army
25 Dec, 2024Christmas Day

Vacation leave in Costa Rica

In general, employees in Costa Rica accrue one day of paid vacation leave for every month of work, and then receive a total allowance of 15 days after 50 weeks of work. They may be entitled to further days over time.

Sick leave in Costa Rica

Employees in Costa Rica are entitled to paid sick leave. For the first three days of absence, employers must cover at least 50% of normal pay, with social security paying the remaining half. Social security covers any following absence (beyond three days) at a rate of 60% of normal pay.

Parental leave in Costa Rica

Female employees in Costa Rica are entitled to four months of paid maternity leave, with one month before giving birth and three months after. During this time, employers must pay half of their normal salary and social security covers the remaining half.

Some male employees are entitled to a lower allowance. For example, public sector employees can generally take up to eight days of paid paternity leave.

Terminations and severance in Costa Rica

In general, employees in Costa Rica are entitled to 30 days of notice prior to termination, and must also be given one day per week (paid) to look for another job.

When employees are terminated without proper cause, they are entitled to a severance payment. This payment varies from between seven days and 22 days of pay, depending on their length of service with the employer.

Taxation in Costa Rica

Employees and employers in Costa Rica must both pay into the country’s social security system (known as the Caja). Employees must contribute around 9.5% of salary, while employers contribute around 34.5%.

The income tax rate in Costa Rica is set progressively, so employees pay more at higher income levels. The rates range from 0% to 25% of income.

Corporate tax in Costa Rica is 30% for most companies.

Health coverage in Costa Rica

Public health coverage is funded by social security contributions, so employers do not need to offer private medical insurance to their employees. However, some employers do choose to offer it as an employment benefit.

hassle-free Costa Rica compensation & benefits

Compensation & Benefits

Compensation laws in Costa Rica

The minimum wage in Costa Rica varies depending on industry. For example, unskilled workers’ minimum wage is CRC 358,609.52 per month. For this reason, it is important that you understand how your employees are classified and what the specific minimum rates are for them.

Minimum Wage Country Comparison Chart (Per month in USD)
Switzerland (Geneva) $4,000
Italy $2,255
Australia $1996
Algeria $156
Uzbekistan $22
Benefits management in Costa Rica

Setting up a benefits system for your employees in Costa Rica can be difficult to navigate, especially if you are unfamiliar with the country and its laws. If you want to tackle the setup independently, you can expect it to take several weeks and potentially cause delays to your expansion process.

Horizons can help you simplify this stage of your Costa Rica expansion by offering tailored benefit management outsourcing. Our experts will advise you on the best course of action and take care of your benefit setup and management, helping you focus on the important job of your Costa Rican expansion.

Hire in Costa Rica in 24h
without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

FAQs

Generally speaking, the terms “Costa Rica PEO” and “Costa Rica EOR” are used interchangeably.

An EOR in Costa Rica can feasibly hire both local and foreign nationals to work in Costa Rica.

However, the ability of Horizons to sponsor your foreign national employee in Costa Rica may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

In most cases, Horizons’ Costa Rica EOR can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Costa Rica.

It is possible to get a work visa in Costa Rica. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Costa Rica are limited, however—get started today to secure your employees’ visa spot.

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